Electroglas Reports First-Quarter Fiscal 2005 Results
Thursday April 21, 1:00 pm ET
SAN JOSE, Calif.--(BUSINESS WIRE)--April 21, 2005--Electroglas, Inc. (Nasdaq:EGLS - News), a leading supplier of wafer probing and test handling solutions for the semiconductor industry, today reported its operating results for the first fiscal quarter ended March 31, 2005.
Revenue for the first quarter was $7.7 million, a 31% decrease from $11.2 million reported for the fourth fiscal quarter of 2004, and a 52% decrease from $16.0 million reported for the first fiscal quarter of 2004. Net loss on a GAAP (U.S. Generally Accepted Accounting Principles) basis was $7.5 million, or $0.34 per share, compared with a net loss of $6.7 million, or $0.31 per share, for the fourth quarter of 2004, and a net loss of $2.5 million, or $0.12 per share, for the first quarter of 2004. At March 31, 2005, the company had cash and investments of $54.3 million, or approximately $2.50 per share.
"We are disappointed with our results for the first quarter, which were negatively impacted by softness in the semiconductor equipment sector," said Keith Barnes, Electroglas Chairman and CEO. "Many backend companies experienced continued and substantial order and revenue declines in Q1. Electroglas was no exception. We believe business conditions for Electroglas should improve over the next several quarters."
Barnes added, "While the first quarter was difficult, we continued to make significant progress in expanding and improving our product portfolio. Most importantly, we recently introduced our new 4090u+ 200 mm product and our new flagship EG6000, 300mm prober, and we have gotten very good customer feedback. Further, we start 2005 with a strong cash balance from the sale of our San Jose Campus, and we have substantially reduced our operating expenses as a result of the campus sale and continued vigilance on expense control. We believe that these actions will strengthen our ability to competitively participate in a sector upturn."
Second Fiscal Quarter 2005 Business Outlook
Electroglas currently expects revenue for the second fiscal quarter of 2005 to be in the range of approximately $7.0 to $9.0 million and anticipates that quarterly revenues will improve through the year as the company's new products are adopted by new and existing customers.
Investor Conference Call Details
Electroglas' management plans to hold a teleconference on its first fiscal quarter results, along with its outlook for the second fiscal quarter 2005, today beginning at 11:00 a.m. PT, 2:00 p.m. ET. Interested parties who wish to audit the teleconference may call (719) 457-2628, access code 4375012, and are asked to do so approximately 10 minutes before the teleconference is scheduled to begin. No reservations are required. The teleconference will be available via webcast from the company's website at www.electroglas.com. In addition, a telephonic replay will be available through April 28, 2005 at (719) 457-0820, access code 4375012.
About Electroglas
Electroglas is a supplier of innovative probers, prober-based test handlers, test floor management software and services that improve the overall effectiveness of semiconductor manufacturers' wafer and device testing. Headquartered in San Jose, California, the company has been a leading equipment supplier to the semiconductor industry for over four decades, and has shipped more than 15,000 systems worldwide. Electroglas' stock trades on the NASDAQ National Market under the symbol "EGLS." More information about the company and its products is available at www.electroglas.com.
Safe Harbor Statement
This news release contains forward-looking statements including statements relating to our hope that orders that have been pushed out or delayed will be realized in 2005, our belief that business conditions for Electroglas should improve over the next several quarters, our expectations that revenue for the second fiscal quarter of 2005 will be in the $7.0 to $9.0 million range and that quarterly results should improve through the year as new products are adopted by our new and existing customers and our general business outlook. These forward-looking statements involve risks and uncertainties including, but not limited to, the risk of adverse changes in global and domestic economic conditions, a prolonged downturn in the semiconductor and electronics industries, a downturn or decrease in customer utilization rates, unforeseen technical difficulties related to the development and manufacture of our products, and a failure of our new products to achieve broad market acceptance as a result of competing technologies. We assume no obligation to update this information. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to our business in general, see the risk disclosures in our SEC filings, including our most recent Annual Report on Form 10-K for the year ended December 31, 2004 and our Quarterly Reports on Form 10-Q filed from time to time with the SEC.
ELECTROGLAS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per-share amounts)
Three months ended March 31,
-------------------------------
2005 2004
--------------- ---------------
Net sales $ 7,738 $ 16,048
Cost of sales 7,006 9,413
--------------- ---------------
Gross profit 732 6,635
Operating expenses:
Engineering, research and development 3,391 4,011
Sales, general and administrative 4,267 4,459
--------------- ---------------
Total operating expenses 7,658 8,470
--------------- ---------------
Operating loss (6,926) (1,835)
Interest income (expense), net (320) (508)
Other income (expense), net (218) (116)
--------------- ---------------
Loss before income taxes (7,464) (2,459)
Provision for income taxes (4) (44)
--------------- ---------------
Net loss $ (7,468) $ (2,503)
=============== ===============
Basic and diluted net loss per share $ (0.34) $ (0.12)
=============== ===============
Shares used in basic and diluted
calculations 21,754 21,466
=============== ===============
Reconciliation of GAAP to Non-GAAP Financial
Measures Financial Information
In addition to disclosing results that are determined in accordance
with Generally Accepted Accounting Principles (GAAP), Electroglas also
discloses non-GAAP results of operations that exclude certain charges,
or one-time gains or benefits. Electroglas reports non-GAAP results in
order to better assess and reflect operating performance. These
results are provided as a complement to results provided in accordance
with GAAP. Management believes the non-GAAP measure helps indicate
underlying trends in Electroglas' business, and management uses
non-GAAP measures to establish operational goals. Non-GAAP information
is not determined using GAAP and should not be considered superior to
or as a substitute for GAAP measures or data prepared in accordance
with GAAP.
The following is a reconciliation of Generally Accepted Accounting
Principles (GAAP) loss to non-GAAP net loss:
--------------------------------------
Three months ended
--------------------------------------
March 31, December 31, March 31,
2005 2004 2004
------------ ------------ ------------
GAAP loss before income taxes $ (7,464) $ (6,700) $ (2,459)
Non-GAAP adjustments:
Restructuring and impairment
charges - 5,183 -
Warranty charges - - (887)
Gain on sale of long-term
investment - (3,545) -
------------ ------------ ------------
Non-GAAP loss before income
taxes (7,464) (5,062) (3,346)
Income tax provision (benefit) 4 (31) 44
------------ ------------ ------------
Non-GAAP net loss $ (7,468) $ (5,031) $ (3,390)
============ ============ ============
Non-GAAP net loss per share $ (0.34) $ (0.23) $ (0.16)
============ ============ ============
The following is a reconciliation of Generally Accepted Accounting
Principles (GAAP) gross profit to non-GAAP gross profit:
--------------------------------------
Three months ended
--------------------------------------
March 31, December 31, March 31,
2005 2004 2004
------------ ------------ ------------
GAAP gross profit $ 732 $ 2,766 $ 6,635
Non-GAAP adjustments:
Warranty charges - - (887)
------------ ------------ ------------
Non-GAAP gross profit $ 732 $ 2,766 $ 5,748
============ ============ ============
Net sales $ 7,738 $ 11,187 $ 16,048
============ ============ ============
Non-GAAP gross profit % 9% 25% 36%
============ ============ ============
ELECTROGLAS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
March 31, 2005 December 31, 2004
----------------- -----------------
ASSETS
Current assets:
Cash and short-term investments $ 52,917 $ 31,696
Accounts receivable, net 6,456 9,402
Inventories 15,500 15,161
Assets held for sale - 28,305
Prepaid expenses and other
current assets 2,618 2,099
----------------- -----------------
Total current assets 77,491 86,663
Long-term investments 1,389 -
Property, plant and equipment, net 4,817 4,240
Other assets 5,047 5,276
----------------- -----------------
Total assets $ 88,744 $ 96,179
================= =================
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 6,928 $ 6,172
Accrued liabilities 10,815 10,686
----------------- -----------------
Total current liabilities 17,743 16,858
Convertible subordinated notes 33,287 34,123
Non-current liabilities 420 536
Stockholders' equity 37,294 44,662
----------------- -----------------
Total liabilities and stockholders'
equity $ 88,744 $ 96,179
================= =================
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Source: Electroglas, Inc. |
